Charging Ahead: An Exploratory Study of Financial Decision-Making among Millennial Consumers
Evidence suggests that members of Generation Y, or “Millennials,” have weaker financial management skills than other generations. In this chapter, we seek to extend our understanding of Millennials’ financial decisions. We present findings from a qualitative study that explores the reactions of Millennial consumers to typical credit card scenarios, such as whether to accept a new credit card offer or to pay off an outstanding balance. We find that Millennials rely on simple decision heuristics when making financial decisions, have limited understanding of financial and credit principles, and often struggle with self-control in spending.
KeywordsCredit Card Financial Literacy Credit Score Financial Knowledge Credit Term
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